Tuesday, October 6, 2009

Builder Incentives

Builders cut back on incentives

WASHINGTON – Oct. 6, 2009 – Home builders are cutting back on the freebies they’ve been tacking on new homes for the last couple of years to woo buyers.

The reason is simple: Demand is almost back in sync with supply. According to Jeffrey Laverty, analyst with research firm Oscar Gruss & Son, new-home inventory has declined from 12.4 months in January to 7.3 in August, close to the six-month mark considered standard.

While eliminating incentives like free cars and free pools, some builders are continuing to offer to pay points on mortgages and discounts on upgrades – “Incentives that make sense,” says Laura VanVelthoven, Hovnanian’s corporate vice president of marketing and sales.

John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida
Cell: 904-415-0171 Email: holbrook66@msn.com Web: www.nassaumls.net
www.johnholbrook.blogspot.com

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